Should I Choose Equity Financing or Business Bank Loans?
Bank loans and equity financing can support your business goals in different ways. Explore the difference to know what’s the right next step for you.
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Invoice discounting enables you to take out a loan using unpaid invoices as collateral.
The loan amount typically ranges between 80% to 95% of the value of the invoices, which you will pay back (with interest) once you receive payment from your customers.
In this example, you will be given $10,000 x 80% = $8,000 of cash. After you have collected on the invoices, you will pay back $8,000 plus the agreed fee to the lender.
Grow your business with Choco Up
Bank loans and equity financing can support your business goals in different ways. Explore the difference to know what’s the right next step for you.
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